it could maybe be an opportunity cost. but nothing more.
But that's the key.
If you have $10 that you've earned, and a mortgage, you could put that $10 towards the mortgage, saving you the 4% interest on it.
Or you could go to the movies. By going to the movies, you're choosing to pay 4% on the $10. Thus, in essence, your mortgage is financing that movie expenditure.
It may or may not be 100% accurate, but it's one valid way of looking at it.
i dont agree on how you are using opportunity cost
you either pay 10 on your mortgage or you pay 10 to go to the movies. if you pay 10 on the mortgage now, it means no movie. if you pay for the movie now, it means that
later you have to pay 10 plus 4% for the mortgage. you changed the timeline
I argue that if you saw a movie
later, it probably will increase in price, as well
i think we can both agree that the rate or inflation for the movie isnt the same as the APR for the mortgage but the 4% represents the opportunity to buy a house now. you didnt have the cash, and you didnt want to wait and save up.